Central Bank madness

[perry]

Alarma reservas: caen a ritmo acelerado y los economistas temen otra corrida del dólar

En mes y medio, el Banco Central perdió u$s12.000 millones. Los expertos dicen que en cada vencimiento de deuda, los acreedores eligen llevarse los dólares

www.iprofesional.com

Argentina has lost over 12 billion dollars of its reserves to defend the peso in less than 6 weeks . This Is madness and shows that we are all on the Titanic . I believed that one of the condicions of the imf was that this Money was not allowed to defend the devalued peso but in Argentina it seems that it has its own seperate rules . I fear the future

 

[London2Baires]

It will all work out ok. Christina's gambit will work out. Fernandez will win the election and pardon C for her various crimes. Fernandez will promptly resign, and she will become Presidenta, and then can fix the country!

Remember, Argentina runs on magical realism, and she is the Queen of that, so we will be fine. (/Sarcasm)

On a serious note, that article is pretty grim reading, though hardly surprising.

The current mob are just as bad as the K's by the way. The political classes are totally responsible for this economic mess as a direct result of their bankrupt ideologies and brazen corruption, on both 'sides'; a disgrace in toto.

i cry for argentina

 

[TheDonald]

From a geopolitical perspective, I find Argentina's yuan swap with China to be the most worrisome aspect. Given Argentina's economic history, the country has no business doing a swap with any other country - much less a country with $3 trillion in foreign reserves. Both Fernandez (who did the first yuan swap with China) and Macri (who doubled it down), have done Argentina a great disservice. Mark my words, China has no intention of making this swap a one and done transaction; it will be used to Argentina's detriment during a time of duress.

 

[oomotep]

From a geopolitical perspective, I find Argentina's yuan swap with China to be the most worrisome aspect. Given Argentina's economic history, the country has no business doing a swap with any other country - much less a country with $3 trillion in foreign reserves. Both Fernandez (who did the first yuan swap with China) and Macri (who doubled it down), have done Argentina a great disservice. Mark my words, China has no intention of making this swap a one and done transaction; it will be used to Argentina's detriment during a time of duress.

China will pretty much own Argentina. They've already made Africa their bitch!

 

[expat0tree]

Alarma reservas: caen a ritmo acelerado y los economistas temen otra corrida del dólar

En mes y medio, el Banco Central perdió u$s12.000 millones. Los expertos dicen que en cada vencimiento de deuda, los acreedores eligen llevarse los dólares

www.iprofesional.com

Argentina has lost over 12 billion dollars of its reserves to defend the peso in less than 6 weeks . This Is madness and shows that we are all on the Titanic . I believed that one of the condicions of the imf was that this Money was not allowed to defend the devalued peso but in Argentina it seems that it has its own seperate rules . I fear the future

i think there is no future of real growth. the country has to pay up for all this central bank stupidity and people's purchasing power cannot be rising unless the entire economy and the legal system get reinvented, which is very unlikely in the next decade. I predict that argentina will fall for the geopolitical tricks of china when the international credit is no longer there. the argentine government will borrow from china and this way succumb to their rules and politics, rendering itself useless on the world market and do whatever china tells it to do, pretty much like another chinese african colony and it would also have to give up its assets to china because without a constitutional overhaul, argentina cannot grow itself out of perpetual borrowing. more of the same squandering of money by the corrupt inefficient government in the coming years, regardless of who gets elected to be the next president. meantime, we'll all get to enjoy some fresh quality mushrooms grown by me. cheers

 

[HenryNisental]

If she knows how to fix the country, why did not she do it when she was 8 years in power?

 

[garryl]

Alarma reservas: caen a ritmo acelerado y los economistas temen otra corrida del dólar

En mes y medio, el Banco Central perdió u$s12.000 millones. Los expertos dicen que en cada vencimiento de deuda, los acreedores eligen llevarse los dólares

www.iprofesional.com

Argentina has lost over 12 billion dollars of its reserves to defend the peso in less than 6 weeks . This Is madness and shows that we are all on the Titanic . I believed that one of the condicions of the imf was that this Money was not allowed to defend the devalued peso but in Argentina it seems that it has its own seperate rules . I fear the future

What would be the real exchange rate if they do not defend it ? Argentina does not have many 12 billions. Once they exhaust the reserve, peso will be a free fall ? China is doing what CFK was doing, putting a tight control over exchanging dollars and maintaining a fake exchange rate. They have been doing that for at least 10 years, so far they are able to do it. It makes things easier if you have 3 trillion dollars of reserve.

 

[pistachio]

In my opinion ,Argentina is now in a negative feed back loop. Current system doesn‘t work and the force against the change is huge.
As what perry said, this is like titanic.